Protecting Your Kid's Digital Identity: A Parent's Guide
Identity theft can be especially problematic compared to other forms of fraud due to its ability to go undetected for extended periods. In the first half of 2024 alone, a staggering 726,396 cases of identity theft were reported. Surprisingly, this criminal activity is not limited to adults; even children are at risk. In fact, 2% of the reported cases involved individuals under the age of 19. This risk arises mainly due to the idiosyncrasy of synthetic identity theft, where a thief combines your child's Social Security number with fabricated details to create financial accounts.
While you may diligently safeguard your children from online scams, do not overlook the importance of protecting them from identity theft.
To begin, verify if your child has a credit report. Generally speaking, minors do not have credit reports, unless their parents have opened accounts in their name or added them as an authorized user to their own credit cards. To check, simply submit forms to all three credit reporting bureaus (Equifax, Experian, and TransUnion) or fill out an online form for TransUnion.
If your child has an existing credit report, it might be a sign of identity theft. Immediately freeze their credit to protect their financial future. Parents and legal guardians are able to request a credit freeze on behalf of minors for all three bureaus. Supporting documents like IDs, birth certificates, and Social Security cards are required to confirm your authority and legal relationship with the child.
Several methods are available for requesting a credit freeze. Equifax and TransUnion accept freeze requests through mail, while Experian offers an online option. However, minors can also request the freeze themselves. Experian accepts freeze requests from children aged 14 and older, while TransUnion and Equifax accept requests from children turning 16.
Once the credit freezes are in place, you can leave them active until your children require credit or are of a certain age. Store the necessary information to thaw the credit reports securely.
If you discover your child's credit report contains false accounts, take immediate action. Obtain a copy of the report and contact each listed account to report the fraud. Request written confirmation that the accounts were due to identity theft and were consequently closed. Next, freeze your child's credit report, as previously mentioned. Lastly, file a report with the Federal Trade Commission (FTC) at identitytheft.gov. The FTC will help develop an identity theft recovery plan and direct you to the appropriate resources.
Remember to regularly monitor your child's credit reports to prevent any potential identity theft. This can help you catch any suspicious activity early, as a child's credit report might contain false accounts due to identity theft, which could negatively impact their financial future.
Furthermore, ensuring that you have frozen your child's credit can prevent misuse of their personal information, thereby safeguarding their money and financial future from the risks associated with identity theft.
